These Non-IFRS financial measures are defined in the Management's
Discussion and Analysis section.

(2)

The Company changed its dividend policy whereby, effective for 2013, the
Company adopted a quarterly dividend to replace the semi-annual
dividend. The $0.24 dividend declared in the fourth quarter of 2012
represents the second semi-annual dividend of 2012.

President's Message

Pason demonstrated robust operational performance during the fourth
quarter, despite continued declines in drilling activity in the United
States. Drilling industry days in the United States were 4% lower in
the fourth quarter of 2013 than in the fourth quarter of the previous
year. In Canada, drilling days were up 5% for the period. As in
previous periods, activity in international markets was higher than a
year ago, but the picture beyond North America continued to vary widely
between regions and countries.

Total revenue increased 16% to $108.9 million, a record for the fourth
quarter. All of Pason's major product categories generated revenue
growth above drilling industry activity, with the exception of the
Hazardous Gas Alarm. The major segments which demonstrated the highest
year-over-year growth rate were Communications at 61% followed by Gas
Analyzer at 24%.

EBITDA for the fourth quarter was $55.2 million or 51% of revenue, while
funds flow from operations was $45.0 million, up 22% from the fourth
quarter of 2012.

The Company recorded a net income of $24.3 million, or $0.30 per share,
compared to a net loss of $13.7 million, or $0.17 per share, in the
fourth quarter of 2012. The net loss in the previous year was due to an
accrual of $32.5 million for the liability related to the patent
litigation, a non-cash impairment loss of $4.7 million against its
Torque and Tension Sub product, and an additional $0.6 million against
the US water treatment business.

Capital expenditures for the fourth quarter were $20.1 million, up from
$14.0 million the previous year, as deployment of new hardware,
including Pason Rig Display and components of the EDR evolution, ramped
up.

On December 31, 2013, our cash position stood at $89.5 million, which
includes $11.5 million cash held in trust for the January 2014 payment
of the dividend declared in the fourth quarter of 2013. The payment of
USD$112.0 million, announced on August 2, required to resolve all
claims against Pason regarding the infringement lawsuits relating to
our AutoDriller, was made on November 12, 2013. There is no debt on the
balance sheet.

The results for the full year 2013 include record revenue of $403.1
million, EBITDA of $136.7 million and a net income of $23.7 million.
EBITDA and net income for the year were affected by a number of
one-time items, most notably the resolution of the infringement
lawsuits relating to our AutoDriller.

We are increasing our quarterly dividend by 7% to $0.15 per share.

United States

The US segment, our largest business unit, includes our US rental
business and 3PS Inc., our Austin-based equipment manufacturer.

The downward trend in United States drilling activity slowed down. The
number of industry days in the fourth quarter of 2013 was essentially
unchanged from the third quarter of 2013. Year-over-year, industry days
were down 4% in the fourth quarter of 2013 compared to fourth quarter
of 2012, while revenue increased 18% to $61.3 million. On average, 961
US land rigs were operating Pason equipment during the fourth quarter
of 2013, compared to 936 in the same period of 2012. Revenue growth
above industry day growth was achieved through an increase in market
share, higher product penetration and a change to the Communications
pricing model.

Average daily revenue per rig increased by 6%, from US$574 in the fourth
quarter of 2012 to US$611 in 2013. Communications and Gas Analyzer
showed above average growth rates during the period. EDR market share
for the fourth quarter of 2013 was 57% essentially unchanged from the
previous quarter and up 3% from the same period in 2012.

Operating costs in the US segment increased by 7% due to the purchase of
additional satellite bandwidth (which is treated as an operating
expense), and depreciation and amortization increased by 3%. As a
result, our US business unit was able to generate an operating profit
of $30.9 million in the fourth quarter, an increase of 33% over 2012.

Canada

Drilling activity in Canada was slightly higher in the fourth quarter of
2013 than in the previous year, with industry days up 5%. EDR market
share in the fourth quarter of 2013 was 94% compared to 92% the
previous year and 93% the previous quarter. Revenue for the fourth
quarter increased 9% to $34.9 million. On average, 333 Canadian land
rigs were operating Pason equipment compared to 308 the year before.

Average daily revenue per rig increased by 0.4% from $1,116 in the
fourth quarter of 2012 to $1,121 in 2013. EDR (including Workstations
and Sidekicks), Software, and Gas Analyzer showed above average growth
rates during the period.

Operating costs increased by 15% due to the purchase of additional
satellite bandwidth, and depreciation and amortization increased by
24%. The increase in depreciation and amortization was primarily due to
the Company recording a non-cash write-off of $1.1 million in
previously capitalized R&D costs because we discontinued funding
certain projects. As a result, our Canadian business unit was able to
generate an operating profit of $16.9 million for the fourth quarter of
2013, unchanged from the same period in 2012.

International

Our International business unit, which includes our businesses in Latin
America, Australia, and offshore & frontier regions, had a good
quarter. Revenue increased by 29% to $12.8 million for the fourth
quarter of 2013 compared to the fourth quarter of 2012. Revenue was up
11% from the previous quarter.

Strong revenue growth in Australia, Argentina and Offshore & Frontier
was partially offset by continued industry weakness in Brazil and
Mexico.

Operating costs increased 9% and depreciation and amortization decreased
39%. The increase in operating costs was again driven by higher
importation costs as we delivered additional equipment to certain
markets. As a result, the International business unit was able to
generate a quarterly operating profit of $4.6 million, an increase of
257% over the previous year and up 84% from the previous quarter.

The international business unit generated 12% of total revenue and 9% of
operating profit for the Company in the quarter.

Outlook

Analyst's outlooks for drilling industry activity in North America are
flat to modestly positive for 2014, with a potential activity increase
towards the end of the year and into 2015 driven by LNG-related gas
drilling activity.

We anticipate that some of the new products and product enhancements,
both on the hardware and software sides, will start gaining traction in
the North American market in 2014. For example, the new Pason Rig
Display (a ruggedized 19 inch touch screen computer) is already
deployed on over 300 drilling rigs in the United States and Canada. We
also expect continued growth in the Offshore & Frontier segment where
Pason equipment is already active on over 50 drilling rigs. And we plan
to roll out some products and services that have been developed in
collaboration with third parties.

We plan for an increase in our R&D, IT and Corporate Services cost as we
make important investments in our technical infrastructure and systems,
as well as in our business development capabilities.

Our capital expenditure budget for the next 12 months is up to $96.1
million, $64.3 million of which is directed towards new hardware that
can generate incremental revenue or save operating costs, $17.2 million
for maintenance capital, and $14.6 million for capitalized R&D.

Our cash-generating capacity and our cash position are more than
sufficient to cover new business development, planned equipment
upgrades and the dividend.

(signed)

Marcel Kessler
President and Chief Executive OfficerFebruary 27, 2014

Management's Discussion and Analysis

The following discussion and analysis has been prepared by management as
of February 27, 2014, and is a review of the financial condition and
results of operations of Pason Systems Inc. (Pason or the Company)
based on International Financial Reporting Standards (IFRS) and should
be read in conjunction with the consolidated financial statements and
accompanying notes.

Certain information regarding the Company contained herein may
constitute forward-looking statements under applicable securities laws.
Such statements are subject to known or unknown risks and uncertainties
that may cause actual results to differ materially from those
anticipated or implied in the forward-looking statements.

All financial measures presented in this report are expressed in
Canadian dollars unless otherwise indicated.

Overview of the 2013 Fourth Quarter

Three Months Ended December 31,

Years Ended December 31,

2013

2012

2011

2013

2012

2011

(000s, except per share data)

($)

($)

($)

($)

($)

($)

Revenue

108,947

94,006

100,933

403,088

386,514

346,158

Income (loss)

24,288

(13,703)

31,702

23,655

39,884

86,223

Per share - basic

0.30

(0.17)

0.39

0.29

0.49

1.05

Per share - diluted

0.29

(0.16)

0.39

0.29

0.48

1.04

EBITDA (1)

55,231

8,286

47,920

136,647

151,753

171,661

As a % of revenue

50.7

8.8

47.5

33.9

39.3

49.6

Per share - basic

0.67

0.10

0.59

1.66

1.85

2.10

Per share - diluted

0.66

0.10

0.58

1.66

1.84

2.08

Funds flow from operations

44,981

36,948

42,089

123,075

158,948

145,358

Per share - basic

0.55

0.45

0.51

1.50

1.94

1.78

Per share - diluted

0.54

0.44

0.51

1.49

1.92

1.76

Cash (used in) from operating activities

(75,220)

34,215

36,451

62,047

169,178

126,329

Per share - basic

(0.92)

0.42

0.45

0.76

2.06

1.54

Per share - diluted

(0.90)

0.41

0.44

0.75

2.05

1.53

Free cash flow (1)

(95,347)

20,199

14,340

(8,617)

97,754

47,788

Per share - basic

(1.16)

0.25

0.18

(0.10)

1.19

0.58

Per share - diluted

(1.15)

0.24

0.17

(0.10)

1.18

0.58

Cash dividends declared (2)

0.14

0.24

0.20

0.53

0.46

0.38

(1)

These Non-IFRS financial measures are defined in the Management's
Discussion and Analysis section.

(2)

The Company changed its dividend policy whereby, effective for 2013, the
Company adopted a quarterly dividend to replace the semi-annual
dividend.

The $0.24 dividend declared in the fourth quarter of 2012 and the $0.20
dividend declared in the fourth quarter of 2011 represents the second
semi-annual dividend in the respective year.

Management believes that funds flow from operations, as reported in the
Consolidated Statements of Cash Flows, is a useful additional measure
as it represents the cash generated during the period, regardless of
the timing of collection of receivables and payment of payables. Funds
flow from operations represents the cash flow from continuing
operations, excluding non-cash items. Funds flow from operations is
defined as net income adjusted for depreciation and amortization
expense, non-cash stock-based compensation expense, deferred taxes, and
other non-cash items impacting operations.

Cash from operating activities

Cash from operating activities is defined as funds flow from operations
adjusted for changes in working capital items.

Funds flow from operations and cash from operating activities were
impacted by the Company's accounting for the litigation provision.
Before 2013, the Company recorded it as a non-cash add back to arrive
at funds flow from operations. In 2013, the provision and settlement
was treated as a change in working capital to calculate cash from
operating activities.

Non-IFRS Financial Measures

These definitions are not recognized measures under IFRS, and
accordingly, may not be comparable to measures used by other companies.
These Non-IFRS measures provide readers with additional information
regarding the Company's ability to generate funds to finance its
operations, fund its research and development and capital expenditure
program, and pay dividends.

EBITDA

EBITDA is defined as net income before interest expense, income taxes,
stock-based compensation expense, and depreciation and amortization
expense.

Free cash flow

Free cash flow is defined as cash from operating activities less capital
expenditures and deferred development costs.

Overall Performance

Three Months Ended December 31,

Years Ended December 31,

2013

2012

Change

2013

2012

Change

(000s)

($)

($)

(%)

($)

($)

(%)

Revenue

Electronic Drilling Recorder (1)

46,551

40,601

15

175,120

168,951

4

Pit Volume Totalizer

15,931

14,100

13

60,589

59,220

2

Communications (1)

7,844

4,875

61

28,597

20,850

37

Software

7,295

6,694

9

27,651

26,950

3

AutoDriller

9,896

9,410

5

37,445

40,399

(7)

Gas Analyzer/Total Gas System

8,585

6,898

24

31,501

27,304

15

Hazardous Gas Alarm System

1,218

1,932

(37)

5,152

7,345

(30)

Mobilization

2,897

3,098

(6)

11,292

12,265

(8)

Sales (2)

4,870

2,949

65

13,195

9,575

38

Other

3,860

3,449

12

12,546

13,655

(8)

Total revenue

108,947

94,006

16

403,088

386,514

4

(1)

A portion of the Company's USA communications revenue was reclassified
to EDR revenue to better reflect the nature of such revenue. All
comparative figures have been restated accordingly. This change had no
impact on reported key metrics, EBITDA, cash flow from operating
activities, or net income (Q4 2012 - $2,153, YTD 2012 - $9,344, YTD Q3
2013 - $6,711).

(2)

Sales and rental services expense for 2012 have been reclassified to
conform with 2013 presentation.

Electronic Drilling Recorder (EDR) and Pit Volume Totalizer (PVT) rental
day performance for Canada and the United States is reported below:

Canada

Three Months Ended December 31,

Years Ended December 31,

2013

2012

Change

2013

2012

Change

(%)

(%)

EDR rental days (#)

30,600

28,300

8

113,600

115,700

(2)

PVT rental days (#)

29,700

27,900

6

111,100

114,200

(3)

United States

Three Months Ended December 31,

Years Ended December 31,

2013

2012

Change

2013

2012

Change

(%)

(%)

EDR rental days (#)

88,500

86,100

3

351,300

378,800

(7)

PVT rental days (#)

66,700

62,100

7

263,700

267,800

(2)

Electronic Drilling Recorder

The Pason EDR remains the Company's primary product. The EDR provides a
complete system of drilling data acquisition, data networking, and
drilling management tools and reports at both the wellsite and customer
offices. The EDR is the base product from which all other wellsite
instrumentation products are linked. By linking these products, a
number of otherwise redundant elements such as data processing,
display, storage, and networking are eliminated. This ensures greater
reliability and a more robust system of instrumentation for the
customer. Revenue generated from the EDR increased 15% for the fourth
quarter of 2013 compared to the same period in 2012 and on an annual
basis revenue was up 4%. This increase is attributable to continued
growth in demand for EDR peripheral devices in all of the Company's
major markets, an increase in US market share over the fourth quarter
of 2012 (57% versus 54%), a similar increase in the Canadian market
share (94% versus 92%), a strengthening US dollar relative to the
Canadian dollar, and new revenue in frontier markets. These factors
were offset by a drop in rig activity in the US market (4% for the
fourth quarter and 9% year to date) while fourth quarter Canadian rig
activity was up 5% over 2012 levels, but decreased 4% on an annual
basis. Canadian EDR days increased 8% in the three months ended
December 31, 2013, while US EDR days increased by 3%. On an annual
basis, EDR days dropped 2% in Canada and 7% in the US, both of which
compared favorably to the decline in rig activity.

During the year ended December 31,2013, the Pason EDR was installed on
95% of all active land rigs in Canada and 57% of the land rigs in the
US.

In addition, the Company continues to gain new customers in its
International business unit.

Pit Volume Totalizer

The PVT is Pason's proprietary solution for the detection and early
warning of "kicks" that are caused by hydrocarbons entering the
wellbore under high pressure and expanding as they migrate to the
surface. PVT revenue for the quarter was impacted by an increase in
product penetration in the US market and the foreign exchange
fluctuation, offset by the change in rig activity previously described
above. During the year ended 2013, the PVT was installed on 98% of rigs
with a Pason EDR in Canada and 75% in the US, compared to 99% and 71%,
respectively, in 2012.

Communications

Pason's Communications rental revenue is derived from the Company's
automatic aiming satellite system. This system provides high-speed
wellsite communications for email and web application management tools.
Pason displays all data in standard forms on its DataHub web
application, although if customers require greater analysis or desire
to have the information transferred to another supplier's database,
data is available for export from the Pason DataHub using WITSML (a
specification for transferring data among oilfield service companies,
drilling contractors, and operators). The Company continues to
complement its satellite equipment with High Speed Packet Access
(HSPA), a high-speed wireless ground system that requires lower capital
cost, less service, and lower cost per Internet kilobyte, benefiting
Company margins. In Canada, HSPA has been installed on all rigs, and
the majority of the rigs running will benefit from the investment in
HSPA given the growth in cellular coverage. In the US, field coverage
tests for HSPA are continuing with positive results. In addition, the
US business unit increased its revenue as a result of a shift in the
pricing model for communication services.

Software

The Pason DataHub is the Company's data management system that collects,
stores, and displays drilling data, reports, and real-time information
from drilling operations. The DataHub provides access to data through a
number of innovative applications or services including:

During the year ended 2013, 97% of the Company's Canadian customers and
90% of customers in the US were using all or a portion of the
functionality of the DataHub, compared to 98% and 87%, respectively, in
2012.

AutoDriller

Pason's AutoDriller is used to maintain constant weight on the drill bit
while a well is being drilled. During the year ended December 31, 2013,
the AutoDriller was installed on 73% of Canadian and 45% of US land
rigs operating with a Pason EDR system, compared to 78% and 49%,
respectively, in 2012. Pason's market share for this particular product
has declined from previous levels due to the introduction and
advancement of integrated drilling rigs.

Gas Analyzer and Total Gas System

The Pason Gas Analyzer, which has replaced the Total Gas System (TGAS)
in the Canadian and US markets, measures the total hydrocarbon gases
(C1 through C4) exiting the wellbore, and then calculates the lag time
to show the formation depth where the gases were produced. The Gas
Analyzer increases the functionality that was found in the TGAS product
to include the actual composition of the gas and further calculates
geologic ratios from the gas composition to assist in indicating the
type of gas, natural gas liquid, or oil in the formation. The Company
continues to realize increased product penetration for this product.
For 2013, the Gas Analyzer was installed on 57% of Canadian and 23% of
US land rigs operating with a Pason EDR system. The penetration in
Canada is an increase of approximately 5% in market share over 2012
levels while the US has seen an increase of 4%. The roll out of the Gas
Analyzer in the International markets continues with anticipated
completion in most of the major markets in 2014.

Hazardous Gas Alarm System

The Pason Hazardous Gas Alarm System (HGAS) monitors lower explosive
limit (LEL) gases and H2S gases and displays the readings on the EDR. If a hazardous rig
atmosphere is detected, the system reacts immediately, sounding an
alarm and flashing a strobe light. Early in 2013, the Company
identified a sensor on the H2S product, a part of the HGAS system, that was not performing to the
manufacturer's standards. As a result, the Company suspended the
functionality of this portion of the HGAS while it investigates a
solution to the problem. The Company initiated field trials with a new
technology in the third quarter of 2013 and while results showed
improvements in performance the Company continues to research
alternatives. The Company is still able to rent this equipment out in
its International operations as the issues identified tend to be
related to the operation of the sensors in cold climates.

Mobilization

Mobilization revenue is comprised of all services provided to our
customers for which they are invoiced, and includes service calls,
equipment installations, mileage, satellite transportation, and
replacement parts.

Sales

Sales represent sensors and other systems sold by 3PS, Inc. and spare
parts sold by Pason Offshore.

Other

Other is comprised mostly of service rig recorder rentals in Latin
America and electronic choke actuator rentals.

Discussion of Operations

United States Operations

Three Months Ended December 31,

Years Ended December 31,

2013

2012

Change

2013

2012

Change

(000s)

($)

($)

(%)

($)

($)

(%)

Revenue

Electronic Drilling Recorder (1)

27,883

24,705

13

108,021

107,160

1

Pit Volume Totalizer

8,755

7,685

14

33,959

33,459

1

Communications (1)

3,417

901

279

11,997

4,789

151

Software

4,548

4,134

10

17,586

16,976

4

AutoDriller

5,124

5,073

1

20,467

23,222

(12)

Gas Analyzer/Total Gas System

3,461

2,667

30

13,285

11,312

17

Hazardous Gas Alarm System

534

800

(33)

2,200

3,169

(31)

Mobilization

2,164

2,299

(6)

8,551

9,233

(7)

Sales (2)

4,381

2,547

72

11,998

7,790

54

Other

1,024

1,209

(15)

3,896

5,944

(34)

Total revenue

61,291

52,020

18

231,960

223,054

4

Operating costs (2)

22,502

21,084

7

88,697

85,811

3

Depreciation and amortization

7,909

7,713

3

29,366

32,381

(9)

Segment operating profit

30,880

23,223

33

113,897

104,862

9

(1)

A portion of the Company's USA communications revenue was reclassified
to EDR revenue to better reflect the nature of such revenue. All
comparative figures have been restated accordingly. This change had no
impact on reported key metrics, EBITDA, cash flow from operating
activities, or net income (Q4 2012 - $2,153, YTD 2012 - $9,344, YTD Q3
2013 - $6,711).

(2)

Sales and rental services expense for 2012 have been reclassified to
conform with 2013 presentation.

US segment revenue increased by 18% in the fourth quarter of 2013 over
the 2012 comparable period (11% increase when measured in USD), while
revenue from the rental of instrumentation equipment increased 16% for
the quarter (USD 9%).

For the year ended 2013, US segment revenue increased by 4% (USD 1%)
over the previous year, and revenue from the rental of instrumentation
equipment increased by 3% (USD 0%).

As expected, the number of US drilling days decreased approximately 4%
in the fourth quarter of 2013 versus the fourth quarter of 2012.
However, revenue from the rental of instrumentation compared favorably
to the drop in activity, with an increase of 16% (USD 9%) over 2012
levels.

Annual drilling days decreased 9% over 2012 levels while rental revenue
continued to hold up well against the decline in activity with an
increase of 3% (USD 0%).

Revenue was impacted by the following factors:

More products on each rig, new product adoption, and a favorable
exchange rate. Revenue increased as a result of a change in the pricing
model for communications service, additional product penetration,
primarily with gains in EDR peripheral devices (mostly due to
Workstations), increased PVT market share, customer acceptance of the
Company's Live Rig View (LRV) real-time data software, and an increase
in the adoption of the Gas Analyzer. These factors combined resulted in
an increase in revenue per EDR day in the fourth quarter of 2013 over
2012 levels of $73 (USD $37). On a year-to-date basis revenue per EDR
increased by $62 (USD $43 ) over 2012.

An increase in EDR rental days of 3% for the three months ended
December 31, 2013, over the same time period in 2012, and a decrease of
7% for the year ended 2013 over 2012 levels.

A reduction in Hazardous Gas Alarm revenue due to the Company removing
the H2S sensor from the rig site due to the issues surrounding the
functionality described above and a reduction in product adoption of
the AutoDriller.

The factors explained above resulted in the US segment being able to
realize revenue per EDR day during the fourth quarter of 2013 of $641
(USD $611) compared to $568 (USD $574) during the same time period in
2012. For the year ended December 31, 2013, revenue per EDR day
increased by $62 (USD $43) to $623 (USD $605) over 2012 amounts.

Revenue per industry day for the fourth quarter of the year was $367
(USD $350) compared to $305 (USD $308) in 2012. On a year-to-date basis
this metric increased by $42 (USD $31) to $356 (USD $345).

US market share was 57% during the year ended December 31, 2013, a
slight increase from the corresponding period in 2012.

The majority of the increase in Sales revenue relates to the increase in
sales of sensors and systems by 3PS to third parties.

Segment profit, as a percentage of revenue, was 50% for the fourth
quarter of 2013 compared to 45% for the corresponding period in 2012,
an increase of $7.6 million. Year-to-date operating profit increased
$9.0 million. The US business unit was able to increase its operating
margin by leveraging its fixed cost structure and controlling variable
costs, including repair costs, which are down $0.3 million for the
quarter and $1.4 million for the full year, as a result of the drop in
active rig count, which allows the business unit to use idle equipment
in its fleet to satisfy customer demand, and a drop in average repair
costs on some products.

The 2013 fourth quarter and full year segment profit percentage was
impacted by the following factors (all amounts in $CDN):

An increase in communication-related expenses of $0.5 million for the
fourth quarter and $2.4 million for the full year due to the US
business unit implementing a more robust level of service to its
customers. The business unit revised its pricing structure to reflect
this increased level of performance.

An increase in 3PS sales, with a corresponding increase in costs of
goods sold, which is included in operating costs.

Most other rental service costs were relatively flat over the
corresponding period in 2012 when measured in USD. However, because of
the weakening Canadian dollar, rental service costs, when measured in
CDN, increased by $0.9 million for the fourth quarter and $0.7 million
year to date.

Fourth quarter 2013 depreciation and amortization expense was relatively
flat compared to the fourth quarter of 2012. Year-to-date depreciation
was down $3.0 million for the following reasons:

The Company began to accelerate the depreciation on its TGAS system in
2012 to recognize the fact that it was being replaced by the Gas
Analyzer. The TGAS systems are now fully depreciated, resulting in a
reduction in depreciation expense of $2.4 million.

In the first quarter of 2012, the Company began to accelerate the
depreciation on a portion of its base EDR system, which will become
obsolete as a result of new product initiatives. Later in 2012, the
Company re-evaluated this assumption and reduced the amount of
accelerated depreciation being recorded. This led to a reduction in
depreciation of $2.7 million.

The above reductions were offset by an increase in depreciation on the
Gas Analyzer system and upgrades to its communication infrastructure to
accommodate increased functionality. Both of these added approximately
$2.0 million in depreciation expense.

Canadian Operations

Three Months Ended December 31,

Years Ended December 31,

2013

2012

Change

2013

2012

Change

(000s)

($)

($)

(%)

($)

($)

(%)

Revenue

Electronic Drilling Recorder

13,621

11,864

15

48,943

46,632

5

Pit Volume Totalizer

5,343

4,929

8

19,706

19,921

(1)

Communications

4,034

3,861

4

15,077

15,524

(3)

Software

2,620

2,385

10

9,631

9,461

2

AutoDriller

3,475

3,368

3

12,522

13,500

(7)

Gas Analyzer/Total Gas System

3,913

3,357

17

13,618

12,303

11

Hazardous Gas Alarm System

339

609

(44)

1,482

2,443

(39)

Mobilization

141

178

(21)

496

638

(22)

Sales

—

—

—

—

—

—

Other

1,367

1,488

(8)

5,147

5,316

(3)

Total revenue

34,853

32,039

9

126,622

125,738

1

Operating costs

10,228

8,858

15

37,116

36,291

2

Depreciation and amortization

7,757

6,246

24

26,088

26,964

(3)

Segment operating profit

16,868

16,935

—

63,418

62,483

1

Canadian segment revenue grew by 9% for the three months ended
December 31, 2013, compared to the same period in 2012. This positive
growth is a result of a 5% increase in the number of drilling industry
days from 2012 levels, combined with more product penetration in a
number of different products, and an increase in market share to 94%
versus 92% in 2012.

On a year-to-date basis, revenue increased by 1%, compared to the year
ended 2012. The number of drilling days was down by 4%, but similar to
the fourth quarter, revenue increased due to product penetration and
growth in market share.

EDR rental days increased 8% in the fourth quarter of 2013 over 2012
levels. The decrease in EDR rental days for the year ended 2013 was 2%,
which was a positive result compared to the decrease in industry days
of 4%.

Canadian market share was 95% during the year ended December 31, 2013,
compared to 93% in the corresponding period in 2012.

The Canadian business unit was able to increase its revenue over and
above the change in industry activity in the fourth quarter mostly
through increased product adoption, notably EDR peripherals including
SideKicks and Workstations, and increases in software revenue. In
addition, the business unit continued to gain market acceptance of the
Gas Analyzer. These factors combined to lessen the impact of the drop
in revenue from the AutoDriller and the Hazardous Gas Alarm System as a
result of the issues described previously.

The factors above combined to result in:

An increase in revenue per EDR day during the fourth quarter of 2013
compared to 2012 of $5 to $1,121. For the year ended December 31, 2013,
revenue per EDR increased by $29 to $1,101.

Fourth quarter revenue per industry day of $1,055 in 2013 compared to
$1,022 in 2012. This metric for the year ended December 31, 2013, was
$1,041, an increase of 5% over the similar period in 2012.

The segment profit for the fourth quarter of 2013 of $16.9 million is a
decrease of $0.1 million over the 2012 amount. Factors impacting the
fourth quarter results include:

Fourth quarter operating expenses include an increase in satellite
bandwidth costs of $0.8 million as an additional segment was added to
improve the customer experience at the rig. These costs should remain
at current levels going forward.

A slight increase of $0.6 million in field-related costs and repairs due
to the increase in industry activity.

An increase in depreciation and amortization expense due to a non-cash
write-off of $1.1 million of previously capitalized R&D costs as a
result of the decision to discontinue funding such projects.

The increase in satellite costs and depreciation and amortization
expense resulted in segment profit, as a percent of revenue, dropping
to 48% in the fourth quarter of 2013, compared to 53% in the fourth
quarter of 2012.

Factors impacting the year-to-date results include weakness in drilling
activity in the first three quarters of 2013, which led to a decrease
in industry days of 4,400 (4%) for the 2013 year, with a corresponding
decrease in EDR rental days of 2,100 or 2%. Other factors impacting the
year-to-date results include:

An increase in satellite bandwidth costs of $1.6 million.

A slight decrease in field-related costs, including repairs, due in most
part to the drop in rig activity for the full year.

Decrease in depreciation and amortization expense of $0.8 million
comprised of:

A decrease in depreciation due to the TGAS being fully depreciated.
This, combined with a drop in the acceleration of depreciation on a
portion of its base EDR systems, led to a decline in expense of $2.7
million.

A non-cash write-off of $1.0 million of previously capitalized R&D costs
as a result of the decision to discontinue funding such projects,
combined with an increase in amortization of R&D costs of $1.0 million
as a result of the deployment of new software applications.

International Operations

Three Months Ended December 31,

Years Ended December 31,

2013

2012

Change

2013

2012

Change

(000s)

($)

($)

(%)

($)

($)

(%)

Revenue

Electronic Drilling Recorder

5,047

4,032

25

18,156

15,159

20

Pit Volume Totalizer

1,833

1,486

23

6,924

5,840

19

Communications

393

113

248

1,523

537

184

Software

127

175

(27)

434

513

(15)

AutoDriller

1,297

969

34

4,456

3,677

21

Gas Analyzer/Total Gas System

1,211

874

39

4,598

3,689

25

Hazardous Gas Alarm System

345

523

(34)

1,470

1,733

(15)

Mobilization

592

621

(5)

2,245

2,394

(6)

Sales

489

402

22

1,197

1,785

(33)

Other

1,469

752

95

3,503

2,395

46

Total revenue

12,803

9,947

29

44,506

37,722

18

Operating costs

6,715

6,152

9

27,702

23,073

20

Depreciation and amortization

1,534

2,518

(39)

6,717

8,868

(24)

Segment operating profit

4,554

1,277

257

10,087

5,781

74

Revenue in the International operations increased 29% in the fourth
quarter of 2013 compared to the same time period in 2012. Year-to-date
revenue increased 18%.

Operating profit increased by $3.3 million for the fourth quarter of
2013 over 2012 results. Operating profit for the year ended December
31, 2013, increased 74% over the similar period in 2012.

A number of factors influenced these results:

In Latin America, increased activity in Argentina and the Andean region
offset continued market weakness in Brazil and Mexico. Revenue was up
14% for the fourth quarter of 2013 versus the comparative period in
2012. On a year to date basis revenue increased 7%.

Australia revenue increased 30% for the fourth quarter of 2013 and 46%
for the full year from 2012 levels as drilling activity continues to
increase across the region, combined with a slight up tick in market
share. This revenue increase translated into an increase in operating
profit of approximately 70% over 2012 for the three and twelve months
ended December 31,2013.

The Company continues to increase its customer base in areas the Company
has identified as "frontier markets", including the Middle East and
North Africa (MENA) regions. These new markets, combined with increases
in market share in the Gulf of Mexico, resulted in an increase in
year-to-date revenue of 32% over 2012 levels.

Operating costs increased due to importation-related expenses in getting
additional equipment into certain markets and increases in
field-related costs in the markets which saw an increase in industry
activity.

Depreciation and amortization decreased because intangible assets that
were being amortized are now fully amortized and increased asset
utilization has reduced the need for new additional equipment.

The Company's Argentinian subsidiary recorded a foreign exchange loss in
the fourth quarter of 2013 of $0.5 million as a result of the
devaluation of the Argentinian peso.

Corporate Expenses

Three Months Ended December 31,

Years Ended December 31,

2013

2012

Change

2013

2012

Change

(000s)

($)

($)

(%)

($)

($)

(%)

Other expenses

Research and development

6,820

7,033

(3)

27,252

22,467

21

Corporate services

4,319

4,326

—

17,373

15,723

10

Stock-based compensation

6,144

7,237

(15)

32,511

23,792

37

Other

Litigation provision

—

32,500

(100)

61,614

37,913

63

Foreign exchange loss

2,797

10

27,870

2,175

4,573

(52)

Earn-out provision

—

—

—

3,071

—

—

Impairment loss

—

5,282

(100)

—

7,918

(100)

Other

335

475

(29)

1,441

992

45

20,415

56,863

(64)

145,437

113,378

28

Consolidated Results

The Company recorded net income of $23.7 million or $0.29 per share for
the 2013 year compared to net income of $39.9 million or $0.49 per
share in 2012.

The 2013 results, when compared to the 2012 numbers, were impacted by
the following corporate related items:

Research and development costs were higher in 2013 versus 2012 as the
Company in 2012 completed the hiring of additional staff to support the
product development initiatives.

An increase in stock-based compensation expense of 37% due to the 34%
increase in the value of the stock price during 2013.

An additional provision of $61.6 million booked in 2013 relating to the
litigation, which was settled in August, 2013.

Part of the 2009 purchase of Petron was an earn-out clause that was
conditional on the successful commercialization of a revenue stream
generated from a product designed by Petron. In the third quarter of
2013, the Company and the previous shareholders of Petron agreed to an
amount of $3.1 million and a provision for this amount was recorded.

In 2012 the Company recorded additional non-cash write-downs relating to
its investment in the US water treatment business and its Torque and
Tension sub product.

The effective tax rate for 2013 is significantly higher than the 2012
rate due to the following factors:

The significant non-deductible, non-cash expense provision for the
expensing of common share options under the Black-Scholes pricing
model.

The Petron earn-out provision.

Q4 2013 versus Q4 2012

The active rig count in the US decreased by 4% over the fourth quarter
of 2012, and Canadian activity increased by 5%, while both business
units saw an increase in their market share. The International market
saw a modest increase in total drilling days, with pockets of
significant growth (Offshore, Australia, Argentina) combined with
continued weakness in other markets (Brazil, Mexico).

The Company recorded a net profit of $24.3 million or $0.30 per share in
the fourth quarter of 2013 compared to a net loss of $13.7 million or
$0.17 per share in the fourth quarter of 2012. The fourth quarter
consolidated results, when compared to 2012 figures, were impacted by
the following significant items:

Stock-based compensation expense decreased compared to the fourth
quarter of 2012 due to a smaller increase in the Company's stock price
in the fourth quarter of the current year versus 2012.

In the fourth quarter of 2012, the Company recorded an additional
accrual of $32.5 million for the liability related to the patent
litigation. This litigation was settled in August of 2013.

An increase in the foreign exchange loss of $2.7 million due to:

the weakening Canadian dollar versus the US dollar which resulted in a
loss on the revaluation of the litigation provision into Canadian
dollars until the payment date in November of 2013.

a foreign exchange loss in Argentina as a result of the devaluation of
the Argentinian peso.

During the fourth quarter of 2012, the Company recorded a non-cash
impairment loss of $4.7 million against its Torque and Tension Sub
product, and an additional $0.6 million against the US water treatment
business.

Q4 2013 versus Q3 2013

The Company's fourth quarter is usually its second strongest quarter.
The Canadian business unit realized a profit of $16.9 million for the
three months ended December 31, 2013, compared to a $15.9 million
profit in the third quarter of 2013. The US business unit realized a
profit of $30.9 million for the three months ended December 31, 2013,
compared to a $30.5 million profit in the third quarter of 2013.
International operating profit was up $2.0 million from the prior
quarter.

The following items also impacted the comparison to the third quarter
2013 results:

A decrease in stock-based compensation expense of $9.6 million compared
to the third quarter of the current year due to an increase in the
Company's stock price of 19% during the third quarter compared to an
increase in the stock price of 2% in the current quarter.

Increase in depreciation and amortization expense of $1.1 million due to
the Company recording in the fourth quarter a non-cash write-off of
previously capitalized R&D costs.

An increase in the foreign exchange loss of $2.1 million due to the
factors described in the section above.

Part of the 2009 purchase of Petron was an earn-out clause that was
conditional on the successful commercialization of a revenue stream
generated from a product designed by Petron. In the third quarter of
2013, the Company and the previous shareholders of Petron agreed to an
amount of $3.1 million and a provision for this amount was recorded in
the third quarter.

Fourth Quarter & Year End Conference Call

Pason will be conducting a conference call for interested analysts,
brokers, investors and media representatives to review its fourth
quarter and full-year results at 9:00 a.m. (Calgary time) on Friday,
February 28, 2014. The conference call dial-in number is 1-888-231-8191
or 1-647-427-7450. You can access the seven-day replay by dialing
1-855-859-2056 or 1-416-849-0833, using password 19438722.

Pason Systems Inc. is a leading global provider of specialized data
management systems for drilling rigs. Our solutions, which include data
acquisition, wellsite reporting, remote communications, and web-based
information management, enable collaboration between the rig and the
office. Pason's common shares trade on the Toronto Stock Exchange under
the symbol PSI.TO.

Additional information, including the Company's Annual Report and Annual
Information Form for the year ended December 31, 2013, is available on
SEDAR at www.sedar.com or on the Company's website at www.pason.com.

Shareholders are also invited to attend the Company's Annual and Special
Meeting on Wednesday, May 7, 2014, at 3:30 pm at the offices of Pason
Systems Inc., 6120 Third Street SE, Calgary, Alberta.

Consolidated Balance Sheets

As at

December 31, 2013

December 31, 2012

(CDN 000s) (unaudited)

($)

($)

Assets

Current

Cash and cash equivalents

78,018

138,253

Cash held in trust

11,502

19,691

Trade and other receivables

87,469

84,506

Prepaid expenses

3,121

2,920

Income taxes recoverable

15,752

—

Total current assets

195,862

245,370

Non-current

Property, plant and equipment

183,601

174,651

Intangible assets

65,261

59,593

Deferred tax assets

1,152

8,764

Total non-current assets

250,014

243,008

Total assets

445,876

488,378

Liabilities and equity

Current

Trade payables and accruals

30,485

25,674

Litigation provision

—

19,533

Income taxes payable

—

3,313

Stock-based compensation liability

25,942

13,788

Dividend payable

11,502

19,691

Total current liabilities

67,929

81,999

Non-current

Stock-based compensation liability

3,905

2,583

Deferred tax liabilities

7,573

2,600

Litigation provision

—

32,500

Total non-current liabilities

11,478

37,683

Equity

Share capital

80,725

79,393

Share-based benefits reserve

12,927

12,927

Foreign currency translation reserve

7,958

(8,348)

Retained earnings

264,859

284,724

Total equity

366,469

368,696

Total liabilities and equity

445,876

488,378

Change in accounting classification

In 2013, the Company changed how it discloses cash held in trust.
Previously, this amount was included in "Cash and cash equivalents" on
the Consolidated Balance Sheets. Effective for 2013, cash held in
trust, representing cash held for the payment of the dividend, is
separately identified as a current asset. The 2012 comparative
financial statements have been adjusted to reflect this change in the
accounting policy. The change results in the consolidated financial
statements providing reliable and more relevant information.

Consolidated Statements of Operations

Three Months Ended December 31,

Years EndedDecember 31,

2013

2012

2013

2012

(CDN 000s, except per share data) (unaudited)

($)

($)

($)

($)

Revenue

Equipment rentals and sales

108,947

94,006

403,088

386,514

Operating expenses

Rental services

34,209

31,663

134,874

125,269

Local administration

5,236

4,431

18,641

19,906

Depreciation and amortization

17,200

16,477

62,171

68,213

56,645

52,571

215,686

213,388

Operating profit

52,302

41,435

187,402

173,126

Other expenses

Research and development

6,820

7,033

27,252

22,467

Corporate services

4,319

4,326

17,373

15,723

Stock-based compensation

6,144

7,237

32,511

23,792

Other expenses

3,132

38,267

68,301

51,396

20,415

56,863

145,437

113,378

Income (loss) before income taxes

31,887

(15,428)

41,965

59,748

Income taxes (recovery)

7,599

(1,725)

18,310

19,864

Net income (loss)

24,288

(13,703)

23,655

39,884

Income (loss) per share

Basic

0.30

(0.17)

0.29

0.49

Diluted

0.29

(0.16)

0.29

0.48

Consolidated Statements of Other Comprehensive Income

Three Months Ended December 31,

Years EndedDecember 31,

2013

2012

2013

2012

(CDN 000s) (unaudited)

($)

($)

($)

($)

Net income (loss)

24,288

(13,703)

23,655

39,884

Items that may be reclassified subsequently to net income:

Foreign currency translation adjustment

9,421

2,681

16,306

(2,513)

Total comprehensive income (loss)

33,709

(11,022)

39,961

37,371

Consolidated Statements of Changes in Equity

Share Capital

Share-Based
Benefits
Reserve

Foreign
Currency
Translation
Reserve

Retained
Earnings

Total Equity

(CDN 000s) (unaudited)

($)

($)

($)

($)

($)

Balance at January 1, 2012

77,613

12,927

(5,835)

282,564

367,269

Net income

—

—

—

53,587

53,587

Dividends

—

—

—

(18,033)

(18,033)

Other comprehensive loss

—

—

(5,194)

—

(5,194)

Exercise of stock options

1,222

—

—

—

1,222

Balance at September 30, 2012

78,835

12,927

(11,029)

318,118

398,851

Net loss

—

—

—

(13,703)

(13,703)

Dividends

—

—

—

(19,691)

(19,691)

Other comprehensive loss

—

—

2,681

—

2,681

Exercise of stock options

558

—

—

—

558

Balance at December 31, 2012

79,393

12,927

(8,348)

284,724

368,696

Net loss

—

—

—

(633)

(633)

Dividends

—

—

—

(32,018)

(32,018)

Other comprehensive income

—

—

6,885

—

6,885

Exercise of stock options

1,020

—

—

—

1,020

Balance at September 30, 2013

80,413

12,927

(1,463)

252,073

343,950

Net income

—

—

—

24,288

24,288

Dividends

—

—

—

(11,502)

(11,502)

Other comprehensive income

—

—

9,421

—

9,421

Exercise of stock options

312

—

—

—

312

Balance at December 31, 2013

80,725

12,927

7,958

264,859

366,469

Consolidated Statements of Cash Flows

Three Months EndedDecember 31,

Years EndedDecember 31,

2013

2012

2013

2012

(CDN 000s, except per share data) (unaudited)

($)

($)

($)

($)

Cash from operating activities

Net income (loss)

24,288

(13,703)

23,655

39,884

Adjustment for non-cash items:

Depreciation and amortization

17,200

16,477

62,171

68,213

Litigation provision

—

32,500

—

32,500

Impairment loss

—

5,282

—

7,918

Stock-based compensation

3,668

5,541

20,656

16,067

Deferred income taxes

(2,358)

(8,223)

12,899

(6,019)

Unrealized foreign exchange loss (gain)

2,183

(926)

3,694

385

Funds flow from operations

44,981

36,948

123,075

158,948

Movements in non-cash working capital items:

Decrease (increase) in trade and other receivables

2,712

7,391

(999)

16,376

Decrease (increase) in prepaid expenses

463

1,853

(125)

(994)

Increase (decrease) in income taxes

6,243

3,513

(8,019)

18,072

Decrease in litigation provision

(115,785)

—

(52,033)

—

(Decrease) increase in trade payables and accruals

(9,101)

(10,746)

5,376

(7,101)

(Decrease) increase in stock-based compensation liability

(6,179)

(3,564)

2,973

2,312

Effects of exchange rate changes

2,231

2,808

3,100

1,778

Cash (used in) generated from operating activities

(74,435)

38,203

73,348

189,391

Income tax paid

(785)

(3,988)

(11,301)

(20,213)

Net cash (used in) from operating activities

(75,220)

34,215

62,047

169,178

Cash flows from (used in) financing activities

Proceeds from issuance of common shares

312

558

1,332

1,780

Purchase of stock options

(3,643)

(3,532)

(10,153)

(8,772)

Payment of dividends

(10,677)

—

(51,709)

(34,413)

Net cash used in financing activities

(14,008)

(2,974)

(60,530)

(41,405)

Cash flows (used in) from investing activities

Additions to property, plant and equipment

(17,265)

(10,587)

(56,171)

(60,284)

Deferred development costs

(2,862)

(3,429)

(14,493)

(11,140)

Proceeds on disposal of property, plant and equipment

257

586

582

586

Changes in non-cash working capital

(482)

(35)

(989)

(2,646)

Net cash used in investing activities

(20,352)

(13,465)

(71,071)

(73,484)

Effect of exchange rate on cash and cash equivalents

951

356

1,130

(1,338)

Net (decrease) increase in cash and cash equivalents

(108,629)

18,132

(68,424)

52,951

Cash and cash equivalents, beginning of period

198,149

139,812

157,944

104,993

Cash and cash equivalents, end of period

89,520

157,944

89,520

157,944

Cash and cash equivalents consists of:

Cash and cash equivalents

78,018

138,253

78,018

138,253

Cash held in trust

11,502

19,691

11,502

19,691

Cash and cash equivalents, end of period

89,520

157,944

89,520

157,944

Operating Segments

The Company operates in three geographic segments: Canada, the United
States, and International (Latin America, Offshore, the Eastern
Hemisphere, and the Middle East). The amounts related to each segment
are as follows:

Three Months Ended December 31, 2013

Canada

United States

International

Total

(unaudited)

($)

($)

($)

($)

Revenue

34,853

61,291

12,803

108,947

Operating costs

10,228

22,502

6,715

39,445

Depreciation and amortization

7,757

7,909

1,534

17,200

Segment operating profit

16,868

30,880

4,554

52,302

Research and development

6,820

Corporate services

4,319

Stock-based compensation

6,144

Other expenses

3,132

Income taxes

7,599

Net income

24,288

Capital expenditures

10,118

7,885

2,124

20,127

Goodwill

—

19,685

2,600

22,285

Intangible assets

32,343

7,773

2,860

42,976

Segment assets

173,947

210,764

61,165

445,876

Segment liabilities

46,495

23,621

9,291

79,407

Three Months Ended December 31, 2012

Revenue

32,039

52,020

9,947

94,006

Operating costs

8,858

21,084

6,152

36,094

Depreciation and amortization

6,246

7,713

2,518

16,477

Segment operating profit

16,935

23,223

1,277

41,435

Research and development

7,033

Corporate services

4,326

Stock-based compensation

7,237

Other expenses

38,267

Income taxes

(1,725)

Net loss

(13,703)

Capital expenditures

5,407

5,939

2,670

14,016

Goodwill

—

18,414

2,600

21,014

Intangible assets

25,583

9,711

3,285

38,579

Segment assets

182,458

241,391

64,529

488,378

Segment liabilities

96,780

13,120

9,782

119,682

Year Ended December 31, 2013

Canada

United States

International

Total

($)

($)

($)

($)

Revenue

126,622

231,960

44,506

403,088

Operating costs

37,116

88,697

27,702

153,515

Depreciation and amortization

26,088

29,366

6,717

62,171

Segment operating profit

63,418

113,897

10,087

187,402

Research and development

27,252

Corporate services

17,373

Stock-based compensation

32,511

Other expenses

68,301

Income taxes

18,310

Net income

23,655

Capital expenditures

37,709

26,101

6,854

70,664

Goodwill

—

19,685

2,600

22,285

Intangible assets

32,343

7,773

2,860

42,976

Segment assets

173,947

210,764

61,165

445,876

Segment liabilities

46,495

23,621

9,291

79,407

Year Ended December 31, 2012

Revenue

125,738

223,054

37,722

386,514

Operating costs

36,291

85,811

23,073

145,175

Depreciation and amortization

26,964

32,381

8,868

68,213

Segment operating profit

62,483

104,862

5,781

173,126

Research and development

22,467

Corporate services

15,723

Stock-based compensation

23,792

Other expenses

51,396

Income taxes

19,864

Net income

39,884

Capital expenditures

25,682

37,850

7,892

71,424

Goodwill

—

18,414

2,600

21,014

Intangible assets

25,583

9,711

3,285

38,579

Segment assets

182,458

241,391

64,529

488,378

Segment liabilities

96,780

13,120

9,782

119,682

Other Expenses

Three Months Ended December 31,

Years EndedDecember 31,

2013

2012

2013

2012

($)

($)

($)

($)

Litigation provision

—

32,500

61,614

37,913

Foreign exchange loss

2,797

10

2,175

4,573

Earn-out provision

—

—

3,071

—

Impairment loss

—

5,282

—

7,918

Other

335

475

1,441

992

Other expenses

3,132

38,267

68,301

51,396

During the quarter ended December 31, 2012, the Company accrued an
additional $32.5 million provision for the patent litigation, which was
settled in August, 2013.

During the fourth quarter of 2012, the Company recorded a non-cash
impairment loss of $4.7 million against its Torque and Tension Sub
product, and an additional $0.6 million against the US water treatment
business.

Pason Systems Inc.

Pason Systems Inc. is a leading global provider of specialized data
management systems for drilling rigs. Our solutions, which include data
acquisition, wellsite reporting, remote communications, and web-based
information management, enable collaboration between the rig and the
office. Pason's common shares trade on the Toronto Stock Exchange under
the symbol PSI.TO.

Certain information regarding the Company contained herein may
constitute forward-looking information under applicable securities law.
The words "anticipate", "expect", "believe", "may", "should", "will",
"estimate", "project", "outlook", "forecast" or other similar words are
used to identify such forward-looking information and statements.
Forward-looking statements in this document may include statements,
express or implied regarding the anticipated business prospects and
financial performance of Pason; expectations or projections about
future strategies and goals for growth and expansion; expected and
future cash flows and revenues; and expected impact of future
commitments. These forward-looking statements are based upon various
underlying factors and assumptions, including the state of the economy
and the oil and gas exploration and production business, in particular;
the Company's business prospects and opportunities; and estimates of
the financial and operational performance of Pason.

Forward-looking information and statements are subject to known or
unknown risks and uncertainties that may cause actual results to differ
materially from those anticipated or implied in the forward-looking
information and statements. Risk factors that could cause actual
results or events to differ materially from current expectations
include, among others, the ability of Pason to successfully implement
its strategic initiatives and whether such strategic initiatives will
yield the expected benefits, the operating performance of Pason's
assets and businesses, the price of energy commodities, competitive
factors in the energy industry, changes in laws and regulations
affecting Pason's businesses, technological developments, and general
economic conditions.

Readers are cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such forward
looking statements, although considered reasonable by management as of
the date hereof, may prove to be incorrect and actual results may
differ materially from those anticipated. Forward-looking statements
contained in this press release are expressly qualified by this
cautionary statement.

Additional information on risks and uncertainties and other factors that
could affect Pason's operations or financial results are included in
Pason's reports on file with the Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com) or through Pason's website (www.pason.com). Furthermore, any forward looking statements contained in this news
release are made as of the date of this news release, and Pason does
not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly required
by securities law.

SOURCE Pason Systems Inc.

For further information:

For more information about Pason Systems Inc., visit the company's website at www.pason.com or contact: